Correlation Between Bausch Lomb and Cooper Companies,
Can any of the company-specific risk be diversified away by investing in both Bausch Lomb and Cooper Companies, at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bausch Lomb and Cooper Companies, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bausch Lomb Corp and The Cooper Companies,, you can compare the effects of market volatilities on Bausch Lomb and Cooper Companies, and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bausch Lomb with a short position of Cooper Companies,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Lomb and Cooper Companies,.
Diversification Opportunities for Bausch Lomb and Cooper Companies,
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bausch and Cooper is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Lomb Corp and The Cooper Companies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Companies, and Bausch Lomb is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bausch Lomb Corp are associated (or correlated) with Cooper Companies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Companies, has no effect on the direction of Bausch Lomb i.e., Bausch Lomb and Cooper Companies, go up and down completely randomly.
Pair Corralation between Bausch Lomb and Cooper Companies,
Given the investment horizon of 90 days Bausch Lomb Corp is expected to under-perform the Cooper Companies,. In addition to that, Bausch Lomb is 1.92 times more volatile than The Cooper Companies,. It trades about -0.09 of its total potential returns per unit of risk. The Cooper Companies, is currently generating about -0.15 per unit of volatility. If you would invest 10,551 in The Cooper Companies, on August 28, 2024 and sell it today you would lose (311.00) from holding The Cooper Companies, or give up 2.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bausch Lomb Corp vs. The Cooper Companies,
Performance |
| Timeline |
| Bausch Lomb Corp |
| Cooper Companies, |
Bausch Lomb and Cooper Companies, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Lomb and Cooper Companies,
The main advantage of trading using opposite Bausch Lomb and Cooper Companies, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Lomb position performs unexpectedly, Cooper Companies, can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cooper Companies, will offset losses from the drop in Cooper Companies,'s long position.| Bausch Lomb vs. The Cooper Companies, | Bausch Lomb vs. ICU Medical | Bausch Lomb vs. Hologic | Bausch Lomb vs. Becton Dickinson and |
| Cooper Companies, vs. West Pharmaceutical Services | Cooper Companies, vs. Hologic | Cooper Companies, vs. ICU Medical | Cooper Companies, vs. Haemonetics |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |